Investment Policy Statement

Objectives

  • To be financially independent by the year 2025
  • To have (or have the ability to safely withdraw) an annual income from investments of at least $30,000 in today’s dollars

Risk Tolerance

I have a high risk tolerance. Due to my goal of financial independence at an early age as well as my intended high savings rate, I can easily weather economic downturns that may come along. I also have the flexibility to alter my goals and savings rate based on actual performance, without negative repercussions.

Allocations

  • Large-Cap U.S. Equity Funds – 35%
  • Mid-Cap U.S. Equity Funds – 15%
  • Foreign Equity Funds – 20%
  • REIT Funds & Physical Real Estate – 10%
  • Bond Funds – 10%
  • Non-traditional Investments – 5%
  • Cash – 5%

Selection Criteria

  • Fund expense ratios (low)
  • Tax efficiency (optimized)

Other Notes

  • Will utilize automatic regular investments to automate the process of investing
  • Will utilize tax-sheltered retirement savings accounts for at least 75% of investments
  • Will not attempt to time the market
  • Re-balancing will be attempted every 6 months, and may use the technique of changing future automatic investment allocations to gradually meet allocation goals

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